Expenses are costs incurred by an organization in the process of earning revenue during a given time period. Expense accounts have a direct impact on the profitability of an organization.

List three expense accounts related to payroll. Describe when you would expect the account to be cleared to zero. Explain the methods you could use to reconcile these accounts.

Dobrinski Corporation has provided the following information concerning a capital budgeting project:

The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.

Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using table.

The net present value of the project is closest to: (Round intermediate calculations and final answer to the nearest dollar amount.)

Garrison 16e updates 06-15-2018

Garrison 16e Rechecks 2018-09-04

• $144,380

• $231,250

• $110,974

• $61,649

Coolbrook Company has the following information available for the past year:   

   
The company’s hurdle rate is 6.01 percent.

Required:
1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))

River     ROI_______%     Residual income (loss) _______

Stream ROI_________% Residual Income (loss) _______

2. Recalculate ROI and residual income for each division for each independent situation that follows: (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))

a. Operating income increases by 9 percent.

River     ROI_______%     Residual income (loss) _______

Stream ROI_________% Residual Income (loss) _______

b. Operating income decreases by 11 percent.

River     ROI_______%     Residual income (loss) _______

Stream ROI_________% Residual Income (loss) _______

c. The company invests $241,000 in each division, an amount that generates $112,000 additional income per division.

River     ROI_______%     Residual income (loss) _______

Stream ROI_________% Residual Income (loss) _______

d. Coolbrook changes its hurdle rate to 4.01 percent.

River     ROI_______%     Residual income (loss) _______

Stream ROI_________% Residual Income (loss) _______

3. Problem 23-2A Preparation and analysis of a flexible budget performance report LO P1, P2, A1

Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units.

Phoenix Company’s actual income statement for 2017 follows.

Required:
1. Prepare a flexible budget performance report for 2017.

The operations of the Hamilton Hotel, a small hotel operation, are becoming more complex. Alexander Hamilton, the owner, has asked for your help in preparing his statement of cash flows. He is able to present you with balance sheets and some additional information.

Additional information:

1. Equipment costing $20,000, depreciated to $10,000 was sold for $8,000.
2. An investment costing $5,000 was sold for $8,000
3. Equipment was purchased for $145,000.
4. Dividends declared during 2016 totaled $50,000.
5. Assume only dividends declared and net income affected the retained earnings account
6. Assume all current liabilities are paid on a timely basis
7. Assume that the current amount of the mortgage payable was reclassified from the noncurrent mortgage

Prepare a cash flow statement in proper format for Alexander

Cost of Units Completed and in Process

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Cost per equivalent units of $1.60 for Direct Materials and $3.30 for Conversion Costs.

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

b. Did the production costs change from the preceding period?

and could break it down so i can study it and know how to get answers?

How is the market efficient hypothesis relevant to financial reporting?

How important are current economic conditions to the process of making an estimate of the allowance for doubtful accounts? Explain.

please write business plan project

Note: This problem is for the 2018 tax year.

Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2018, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6789. Janice's parents continue to provide health insurance for her under their policy. Janice wants to contribute to the Presidential Election Campaign Fund.

During 2018, Janice reported the following income and expense items connected with her business.

Janice purchased and placed in service the following fixed assets for her business. Janice wants to elect immediate expensing under § 179, if possible.

• Furniture and fixtures (new) costing $21,000 on January 10.
• Computer equipment (new) costing $12,400 on July 28.

Janice’s itemized deductions include:

Janice did not keep a record of the sales tax she paid. The amount from the sales tax table is $437.
Janice reports interest income of $4,000 on certificates of deposit at Second National Bank. She made estimated tax payments of $3,000 for 2018.

Required:
Compute Janice Morgan’s 2018 Federal income tax payable (or refund due) by providing the following information that would be reported on Form 1040 and Schedules A, B, C, and SE.

• Make realistic assumptions about any missing data.
• If an amount is zero, enter "0".
• Enter all amounts as positive numbers.
• When computing the tax liability, do not round your immediate calculations.
• If required, round your final answers to the nearest dollar.

• Provide the following that would be reported on Janice's Form 1040:

  1. Filing status: The taxpayers' filing status:
  

  2. Calculate taxable gross income.
  $

  3. Calculate the total adjustments for AGI.
  $

  4. Calculate adjusted gross income.
  $

  5. Calculate the greater of the standard deduction or itemized deductions.
  $

  6. Calculate the qualified busies income deduction.
  $

  7. Calculate total taxable income.
  $

  8. Calculate the income tax liability.
  $

  9 Calculate SE taxes due.
  $

  10. Calculate the total tax credits available.
  $

  11. Calculate total withholding and tax payments.
  $

  12. Calculate the amount overpaid (refund):
  $

  13. Calculate the amount of taxes owed:

• Provide the following that would be reported on Janice's Schedule A:

  1. Calculate the deduction allowed for medical and dental expenses.
  $

  2. Calculate the deduction for taxes.
  $

  3. Calculate the deduction for interest.
  $

  4. Calculate the charitable deduction allowed.
  $

  5. Calculate total itemized deductions.
  $

• Provide the following that would be reported on Janice's Schedule B:

  1. Calculate the interest amount:
  $

  2. Calculate the ordinary dividends:
  $

• Provide the following that would be reported on Janice's Schedule C:

  1. Calculate income from sales:

• $

  2. Calculate total expenses:
  $

  3. Calculate net profit or loss
  $

• Provide the following that would be reported on Janice's Form 4562.

  Click here to access Exhibit 8.1 and the depreciation tables in the textbook.

  1. Calculate the total deprecation for the furniture and fixtures:
  $

  2. Calculate the total depreciation for the computer equipment.
  $

• Provide the following that would be reported on Janice's Scheduled SE. When computing the self-employment tax liability, do not round your calculations. Round your final answers to the nearest dollar. Use rounded amount when determining the deduction for self-employment tax.

  1. Calculate the self-employment liability:
  $

  2. Calculate the eduction for self-employment tax:
  $

c. Net income before income tax of $150,000 is desired after covering $410,000 of fixed cost. What

minimum contribution margin ratio must be maintained if total sales revenue is to be $1,600,000?

d. Net income before income tax is 20% of sales revenue, the contribution margin ratio is 60%, and

the break-even dollar sales is $200,000. What is the amount of total revenue?

e. Total fixed cost is $350,000, variable cost per unit is $26, and unit sales price is $50. What dollar

sales volume will generate an after-tax net income of $60,000 when the income tax rate is 40%?

P6-10B. Break-Even and Net Income Planning Venice Company has recently leased facilities for the manu-

facture of a new product. Based on studies made by its accounting personnel, the following data are

available:

Estimated annual sales ........................................ 60,000 units

Estimated Costs Amount Unit Cost

Direct materials............................................... $ 870,000 $14.50

Direct labor .................................................. 750,000 12.50

Manufacturing overhead........................................ 384,000 6.40

Administrative expenses........................................ 228,000

3.80

$2,232,000 $37.20

Selling expenses are expected to be 20% of sales, and the selling price is $82 per unit. Ignore income

tax in this problem.

Required

a. Compute a break-even point in dollars and in units. Assume that manufacturing overhead and

administrative expenses are fixed but that other costs are variable.

b. What would net income before income tax be if 40,000 units were sold?

c. How many units must be sold to earn a net income before income tax of 10% of sales?

P6-11B. Multiple Product Break-Even and Net Income Planning Madison Company manufactures and

sells the following three products:

Red Blue Green

Unit sales ............................................ 20,000 30,000 50,000

Unit sales price........................................ $30 $62 $18

Unit variable cost ...................................... $18 $38 $14

Required

Assume that total fixed cost is $324,800.

a. Compute the net income before income tax based on the sales volumes shown above.

b. Compute the break-even point in total dollars of revenue and in specific unit sales volume for

each product.

c. Prove your break-even calculations by computing the total contribution margin related to your

answer in requirement (b).

EXTENDING YOUR KNOWLEDGE

EYK6-1. Business Decision Case The following total cost data are for Ralston Manufacturing Company,

which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the

foreseeable future, regular sales volume should continue at normal capacity of production.

Solution 6.1

y-intercept 5 Total fixed costs of $5.000

Slope 5 Variable cost per unit of approximately $0.50 per water bottle cage

Total cost 5 ($0.50 3 # of water bottle cages) 1 $5,000

$25,000 5 $0.50 3 40,000 1 $5,000

Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . $1,720,000

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,120,000

Variable overhead . . . . . . . . . . . . . . . . . . . . . . 560,000

Fixed overhead (Note 1). . . . . . . . . . . . . . . . . . 880,000

Selling expense (Note 2) . . . . . . . . . . . . . . . . . 720,000

Administrative expense (fixed) 200,000

$5,200,000

Notes:

1. Beyond normal capacity, fixed overhead cost increases $30,000 for each 20,000 units or fraction

thereof until a maximum capacity of 640,000 units is reached.

2. Selling expenses are a 10% sales commission. Ralston pays only one-half of the regular sales

commission rates on any sale of 20,000 or more units.

Ralston’s sales manager has received a special order for 48,000 units from a large discount chain at a

special price of $16 each, F.O.B. factory. The controller’s office has furnished the following additional

cost data related to the special order:

1. Changes in the product’s construction will reduce direct materials $1.80 per unit.

2. Special processing will add 25% to the per-unit direct labor costs.

3. Variable overhead will continue at the same proportion of direct labor costs.

4. Other costs should not be affected.

Required

a. Present an analysis supporting a decision to accept or reject the special order. Assume Ralston’s

regular sales are not affected by this special order.

b. What is the lowest unit sales price Ralston could receive and still make a before-tax profit of

$39,600 on the special order?

Your department has planned sales of  $573,500 for the season. The turnover goal for the season is 1.8. Using the form develop a six-month merchandise plan on the basis of the following information.  Please submit your completed file in the essay Test 2 "assignment"  

Markdowns: 13%

Operating expenses 40%

Profit 7.5%

Cash Discounts 1.9%

% of Season’s                           % of Season

Month                    Sales                                      Markdowns

February                 13%                                               15.5%

March                     15%                                          12.5%

April                    19%                                      16%

May                         21%                                  18.5%

June                      20%                                      18%

July    12%                                    19.5%

a. Calculate the initial markup %.

b.Distribute monthly planned sales.

c. Determine monthly dollar markdowns.

d. Determine BOM stock figures.

e. Find monthly planned purchases at retail.

F. Find monthly planned purchases at cost.

Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your 'Present Value' answers to the nearest whole dollar.) Required: Consider each of the following three separate situations. 1. The market rate at the date of issuance is 8%. (a) Complete the below table to determine the bonds' issue price on January 1, 2017. (b) Prepare the journal entry to record their issuance. 2. The market rate at the date of issuance is 10%. (a) Complete the below table to determine the bonds' issue price on January 1, 2017. (b) Prepare the journal entry to record their issuance. 3. The market rate at the date of issuance is 12%. (a) Complete the below table to determine the bonds' issue price on January 1, 2017. (b) Prepare the journal entry to record their issuance.

Calculate the annual lease payments due from the lessor, and prepare lease amortization schedule, for each of the following scenarios:

Scenario                                                                                      A                          B                         C

Lease Term                                                                         10 Years               20 Years               4 Year

Fair Value of Lease Asset                                              $600,000             $900,000             $200,000

Lesse's Incremental Borrowing Rate                                         12%              10%                    10%

Lessor's Rate of Return (known by lessee)                             11%                  9%                    12%

Payment Due                                                                     End of Year            End of Year         End of Year